Anavex Life Sciences Corp (AVXL)

[123tom]

One of the road maps to look at

a level of blocks to watch.

AVXL

A battle zone here in the 5.40-5.60 block. Above that is the Elliott wave3 target zone (5.78-5.90 area) and then the finish wave 5 target block (6.00-6.30 area)
Theres a distinction to the quality of each target block. The current one is a pullback zone that held today at a key point/5.42. If we are in a bullish momentum cycle this key point at the 5.40 step could Hold ok and rally upward to test 6 dollars and make the finish rally. But the current battle is ongoing with resistance at 5.55/5.60/5.65 area that could cap and bleed down. The bounce from here must reach at least 5.80 to begin regaining that bullish bias,in my view, and even there, is mild,could cap at 5.80 and that Elliott wave 3 area could turn bearish into a wave C that starts selling down with a stronger bearish effort. It would represent a failure block for the rally. It would represent the retrace from the 6.60 top that bottomed at the 5.10, and that retrace is a bearish retrace that caps around 5.80 area. Its like saying ,there is bullish momentum and bearish momentum fighting a battle around the 5.80 area. So far the first hit at 5.78 the other day has bled down now to hold at 5.40. and this is the battlefield ongoing now, and the next moves will show which momentum is stronger, the evidence will show if/when price gets capped at 5.60 and falls, or capped at 5.80 and fails to bounce again to test the true bullish target zone above 6 dollars. Failure at this current resistance 5.55 area could retest the 5 dollar bottom zone again.
I see the road map on the chart but its hard to describe all the details with tedious words and numbers like this.

Understanding how Elliott wave patterns move,and where the Fibonacci target zones are, is the basic picture I draw. From here at the 5.40 support, a small bullish bounce would test 5.80 and a true rally climb will target 6.00-6.30 as a finished math rally.

A weak bounce will falter at 5.60 area and look to turn downward and bleed down to the lower target block below 5.40